Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited · Published 14 July 2026
Every PI insurance conversation runs into technical vocabulary. This glossary covers the essential UK PI terms — regulatory, policy-wording, statutory — that recur in specialist broker conversations.
Alphabetical list. Each definition is deliberately short — the underlying pages linked from the sector pillars go into full depth.
Aggregate limit
The maximum total the insurer will pay across all claims in the policy period. Once exhausted, no further cover until renewal.
Aggregation clause
Policy wording that treats multiple related claims as a single claim for limit purposes.
APRC
Annual Percentage Rate of Charge — used in mortgage advice contexts under Consumer Duty and MCOB.
ARB
Architects Registration Board — UK statutory regulator for architects, sets Standard 8 requiring adequate PII.
BSA 2022
Building Safety Act 2022 — extends limitation for higher-risk-building professional negligence to 30 years pre-June-2022, 15 years going forward.
Claims-made basis
PI insurance responds to claims made during the policy period, subject to retro-date. Not occurrence-based.
CILEX
Chartered Institute of Legal Executives — regulator of certain legal practitioners; separate from SRA and BSB frameworks.
Consumer Duty
FCA framework under PRIN 2A requiring firms to deliver good outcomes for retail customers — four outcomes.
Defence costs inclusive
Policy provision where legal defence costs are drawn from the policy limit alongside damages.
Defence costs additional
Policy provision where defence costs are separately funded above the policy limit.
DPB
Designated Professional Body — ICAEW, ACCA, ATT, CIOT and others supervising members for FCA-regulated investment business.
Each-and-every-claim
Policy structure where each separate claim has its own limit — no annual cap.
Excess
The amount the insured pays before the insurer contributes to a claim.
FCA
Financial Conduct Authority — UK financial services regulator, supervises PI-regulated activity.
Fair presentation
Duty under Insurance Act 2015 s.3 requiring accurate disclosure of material information at inception and renewal.
FOS
Financial Ombudsman Service — independent dispute resolution for eligible retail complainants.
ICAEW Bye-law 61
Requires ICAEW-regulated firms to hold PII of 2.5x fee income, minimum £100k, maximum £5m per claim.
IDD
Insurance Distribution Directive — UK-adopted framework for insurance intermediary conduct.
Layered programme
PI structure with primary insurer at defined attachment plus excess insurer(s) above.
Lloyd's market
UK insurance market comprising syndicates; accessed by retail brokers via wholesale broker for specialist risks.
MIPRU 3
FCA rule requiring insurance brokers to hold PII adequate to the business scale.
Named additional insured
A third party added to a policy as covered under specific circumstances.
Notification of circumstance
Formal insurer notification of facts that could reasonably give rise to a claim — before the claim is made.
PRIN 2A
FCA cross-cutting standard establishing the Consumer Duty for retail customers.
Qualifying Insurer
Insurer approved by the SRA to write solicitors' MTC-compliant primary PII.
Retroactive date
Earliest date of covered acts on a claims-made PI policy.
RICS Rules of Conduct Rule 9
Requires RICS-regulated firms to hold PII appropriate to size and nature of practice.
Run-off
PI cover for the tail of prior acts after a firm has ceased trading.
SDR
Sustainability Disclosure Requirements — FCA rules on sustainability-related marketing and disclosure.
SMCR
Senior Managers and Certification Regime — FCA framework for senior manager accountability and certification.
SRA MTC
Solicitors Regulation Authority Minimum Terms & Conditions — the mandatory PII wording standards for SRA firms.
Successor practice
Regulatory concept where a new firm carrying on the same or similar business inherits the ceded firm's liabilities and obligations.
TPR
The Pensions Regulator — supervises UK occupational pension schemes and trustees.
Waiver of subrogation
Insurer agreement not to pursue a named third party after paying the insured's claim.
Wholesale broker
Broker specialising in access to Lloyd's and other specialist markets, working through retail brokers.
What is the difference between aggregate and each-and-every-claim?
Aggregate: the policy limit is the maximum for all claims in the policy year combined. Each-and-every-claim: each separate claim has its own limit, no annual cap.
What is a claims-made policy?
One where cover applies to claims made during the policy period, subject to retro-date. Different from occurrence-based which covers acts done during the period regardless of when claim is made.
What is fair presentation duty?
Under Insurance Act 2015 s.3, the insured must disclose material circumstances known to it in a manner reasonably clear and accessible.
What is Consumer Duty and why does it matter for PI?
FCA framework under PRIN 2A requiring firms to deliver good outcomes for retail customers. Widens the scope of complaints that can trigger PI notifications.
What is BSA 2022 s.135?
Building Safety Act 2022 s.135 extends limitation for higher-risk-building professional negligence to 30 years for pre-June-2022 acts, 15 years going forward.
What is the SRA MTC?
SRA Minimum Terms & Conditions - the mandatory wording standards for solicitors' PII in England & Wales.
What is a Qualifying Insurer?
An insurer that has entered into a Participating Insurer's Agreement with the SRA to write solicitors' PII on MTC terms.
What is MIPRU 3?
FCA rule requiring insurance brokers to hold PII adequate to the size of their business.
